Chan and naylor Financial Health Checks

I have been toying with the idea of increasing the investment property loan to reduce the non deductible debt of our own home loan.

This strategy in itself will not reduce your non-deductible debt as the ATO will consider the redraw from your IP as being a new loan and as it is being used to pay down your home loan these borrowings are non-deductible.

There may be opportunities to sell a share of the first property to your wife/you and then to use the sale proceeds to pay down the home. This strategy needs to be considered in line with your income levels, risk exposures and so on.

To see if this is a good idea I was toying with paying the $195 for the Chan and naylor financial health check. Anyone used it before or can anyone offer any general advice.

CN did a financial health check for us. While they didn’t provide us with anything new their analysis of the benefits (or not) of a trust for us was useful. Am currently considering using them as my accountant despite them being in Sydney and us in WA.

Obviously I can and will discuss with my accountant but want to learn more about it myself. As you can see I am fairly ignorant of these mattters !

Be aware that your accountant should have similar investment ideals as you.

A non-property investing accountant dealing with a property investor is less likely to fully conversant with the laws as they apply to property investment.

This is where CN may be of benefit to you – Ed lectures to the ATO and other accountants around Australia.

Chris Batten is used as a reference on Ed’s brochures – Chris is no slouch either.